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Asian shares are mostly lower, as pessimism prevailed about higher interest rates ahead and Wall Street shares fell for the fourth straight week. Oil prices fell, while the Japanese yen continued to decline against the U.S. dollar. Rising energy prices are adding to the worries about recessions in some parts of the world. Shares fell on Wall Street coming into a holiday-shortened week. Stocks have been losing ground as the Federal Reserve has indicated it will not let up anytime soon on raising interest rates to bring down the highest inflation in decades. Wall Street also is grappling with worries about an energy crisis in Europe and its implications for the global economy.
Asian benchmarks are mostly higher, as investor optimism got a perk from a rally on Wall Street that’s on track to break a three-week losing streak. Benchmarks rose in Tokyo, Seoul, Sydney and Shanghai. Somewhat reassuring to market watchers was Japan’s revised seasonally adjusted real gross domestic product, or GDP, for the second quarter, which was revised upward to an annual rate of 3.5% growth, better than the initial estimate at 2.2%. Data showed private consumption and business spending are holding up in the world’s third-largest economy. The S&P 500 rose 1.8%, and the tech-heavy Nasdaq rose even more.
Asian benchmarks are rising, cheered by gains on Wall Street as comments from the Federal Reserve chairman assured markets on the expected rate rise. Benchmarks rose in Japan, Australia and China. Trading was closed in South Korea for a national holiday. Investors are also eyeing interest rates, as the European Central Bank made its largest-ever rate increase to fight inflation. The move is in line with steps taken by the U.S. Federal Reserve and other central banks. Investors also heard from Fed Chair Jerome Powell, who reaffirmed the central bank’s commitment to keep rates high to get inflation under control.